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10 February 2010

We are wrapping up our discussion of Sue Bergamo's article entitled "Is Your Implementation in Trouble?" Bergamo listed seven "high level categories [in troubled ERP implementations]…. in the order from the highest to lowest number of responses" from her informal LinkedIn survey. Here is her list:

A misconception of business expectations

The lack of top level leadership involvement in the project

Business processes were not correctly redefined and continued to be inefficient

The impact of the organizational change was not addressed properly and caused a major upheaval in the company

The vendor wasn't managed correctly and over-promised, then under delivered [sic]

Project management was weak and over-customizations lead to increased scope and time

The integration of diverse applications was harder than anyone expected
(Bergamo 2010)

In the process of our review we are drilling-down on Bergamo's symptoms list and setting them in the context of the New ERP – Extended Readiness for Profit while contrasting them with traditional ERP – Everything Replacement Projects to see if using the New ERP approach would have mitigated the failures.

6. Project management was weak and over-customizations lead to increased scope and timeThis is another no-brainer when it comes to traditional ERP – Everything Replacement Projects versus the New ERP – Extended Readiness for Profit. One simple reason is this: the amount of "real estate" to customize.

Think about it. If your organization is going through an Everything Replacement Project there are dozens – if not hundreds – of places in the new technology that could become a target for customizations. However, in a New ERP – Extended Readiness for Profit project, the effort is so targeted and so narrow in scope that there is just not much opportunity for "scope creep."

But, there is another reason as well.

If you will take time to go back (to prior portions in this series), you will discover that the vendor selection and "proof of concept" portions leading up to an implementation under the New ERP approach are likely to expose an requirements for customization early in the process. In fact, such customization or modification necessities will probably be revealed before the purchase agreement is consummated. This is as it should be.

7. The integration of diverse applications was harder than anyone expectedEven though this is where the New ERP – Extended Readiness for Profit should be most vulnerable, this issue is where the New ERP really shines unlike every other approach.

Why?

This is simply because the New ERP approach takes as its number one priority the matter of EAI (enterprise application integration). EAI is fundamental to the New ERP.

Since, under the New ERP scenario, your organization will not be tearing out the central technology engine (core accounting and related modules) and trying to re-integrate several – or even dozens – of necessary applications across the enterprise, the challenge becomes much less complex. The effort you undertake will be concentrated. Your resources will not be diluted. And the work can be planned and accomplished expeditiously.

Furthermore, looking again to the solution and vendor selection process (see earlier posts in this series), the question of integration of the targeted solutions being brought to bear through the New ERP approach – its ease or difficulty – should be and would be addressed prior to making a final decision on the solution(s) and vendor(s) to be employed.

In summary

In this series we have compared and contrasted traditional ERP – Everything Replacement Projects with the New ERP – Extended Readiness for Profit in addressing seven factors that have lead many organizations to failure or dissatisfaction with their ERP system and implementation as reported by Sue Bergamo in her article "CIO Update: Is Your ERP Implementation in Trouble?"

It should be clear to you and your management team now the many advantaged afforded you by applying the New ERP methods. This is a great way to avoid troubled ERP implementations.